Meta platform CEO Mark Zuckerberg told CNBC’s Jim Cramer Wednesday that Metaverse could become a significant part of the business of social network operators in the second half of 2010.
“We basically want about a billion people in the Metaverse to do hundreds of dollars in commerce, each buying digital goods, digital content, and different ways of expressing it. Whether it’s clothing for avatars, a variety of digital products for virtual homes, or decorating virtual conference rooms, virtual and augmented reality, and utilities to be more productive across the Metaverse. ” Said.
Investors have cut the company’s market capitalization in half this year. Growth slowed In addition, the number of active users per day has declined for the first time in the last two quarters. Zuckerberg is increasingly turning his company into what he considers to be next-generation content, a virtual world where people can buy and sell digital goods for avatars that can communicate with each other. The company’s ticker symbol was changed from FB, a relic of history as a pure social media provider, to META earlier this month.
However, the company’s investment in augmented reality and virtual reality dates back to 2014, when it paid $ 2 billion to headset maker Oculus VR.For shipping headsets Did not exceed the number Shipment of PC or smartphone. Zuckerberg is optimistic about the performance of the current generation of MetaQuest 2, starting at $ 299.
“Quest 2 was a hit,” Zuckerberg told the host of “Mad Money.”
“I’m really happy about how it went. It exceeded my expectations, but it’s still a while before it reaches the scale of hundreds of millions and even billions of people in the Metaverse. I think it will take some time, because it will take some time to get there. That’s the North Star. I think we’ll get there. But, as you know, the other services we’re running. Is already a bit large today. “
The Metaverse experience is more immersive than the texts, photos and videos that are prevalent on Meta’s Facebook and Instagram, and will be a major Meta theme over the next decade, Zuckerberg said.
Zuckerberg met Kramer at the Metaverse. Facebook co-founders said such experiences can foster a sense of being together, even if people are physically on the other side of the country. He said it is possible to make eye contact, which is not guaranteed for video calls, and to use 3D audio, which allows for quiet side conversations.
“Basically, this technology leads to providing this realistic presence,” he said.
To deliver it to customers in the next few years, Meta needs to release a stack of hardware, software, and experiences.
“At this point, as you know, we are a company that can afford to make some large long-term research investments, which is a big focus,” he said.
He said he hopes the economy around the Metaverse will grow in size.
Meta Platforms had 3.64 billion monthly active people across the application family. First quarter, 6% increase from the previous year. WhatsApp reached 2 billion users in 2020. It is also an area where Zuckerberg sees growth potential.
“Our playbook has endeavored to build the service and serve as many people as possible. Increase the service to 1 billion, 2 billion, 3 billion people and then basically monetize it. It’s been expanding, “Zuckerberg said. “And we did that with Facebook and Instagram. WhatsApp is really the next chapter, and business messaging and commerce will play a key role.”
In addition to spending on Metaverse, Meta has invested heavily in the development of artificial intelligence, which can enhance advertising (a source of about 97% of revenue) and the company’s existing applications, Zuckerberg said. rice field.
“Basically, most of the content displayed on Facebook and Instagram comes from friends and follows graphs, so over time, much of that content comes from AI recommendations. It came to be, “said Zuckerberg. “And as AI recommendations improve, we’ll have access to the world of content that’s there, not just the content of the people we follow.”
This is TikTok owned by ByteDance in China, 1 billion monthly active users..Meta tried to keep up with rapid growth with its introduction Instagram reel function Zuckerberg told analysts in April’s first-quarter earnings announcement for Meta. Now, he hopes AI enhancements will make Lille more attractive to Instagram users.
“Our AI system allows us to choose based on what we know about you, what you personally want to learn with interest, and what you want to see,” he said. .. “As it goes well, engineers are shipping model improvements every week. We check something and the relevance increases by a few percent. And we repeat it the next week. As you know, this is just part of what I’ve always focused on running this company, and it’s so fast that I can continue to improve it quickly. “
“We have just brought the AI research supercluster online. We believe this will be the fastest AI supercomputer when fully constructed later this year. This will allow researchers to rank and rank. Improve recommendations for social media services and advertising as a whole. “
Zuckerberg said the company will delay its investment in AI in the event of a recession.
Zuckerberg departure The company’s chief operating officer, Sheryl Sandberg’s Sandberg, has built Facebook’s advertising business, enabling an initial public offering in 2012. The Wall Street Journal Meta reported she left after starting a review of the company’s use of resources for wedding planning. A Meta spokesman told the newspaper that Sandberg’s internal investigation had nothing to do with her choice to resign.
“I don’t think any of the reports helped her leave the company,” Zuckerberg said. “Of course you have to ask her about it, but all I can say is that she is grateful for the wonderful work she has done at the company. She will stay on our board. She Is a key person. She is a close friend. “
— CNBC’s Jonathan Vanian contributed to this report.
Sign up now CNBC Investing Club to track every move in Jim Cramer’s market.